Department for Transport

Bus Update

Grant Shapps: During the pandemic, the government has provided unprecedented levels of financial assistance to the bus sector through the Coronavirus Bus Service Support Grant (CBSSG), supporting bus operators and Local Transport Authorities in England outside of London, with up to £1.4bn in funding since March 2020. With patronage falling and social distancing limiting passengers onboard, CBSSG has funded up to 100% of pre-Covid service levels, ensuring key workers have continued to be able to travel easily and safely. Critically, as restrictions are lifted and passengers return, the bus sector is important in helping the economic recovery.I appreciate that this presents bus operators with a fundamental financial challenge. To encourage passengers back, local bus services should be as available as they were prior to the pandemic. Without support, however, it may not be possible for operators to maintain the services they have provided up until now.I can therefore announce that a further £226.5m in financial support in the form of recovery funding has been made available for the bus sector. Funding operators and local authorities from 1 September until the end of the current financial year, this will succeed CBSSG which ends on 31 August. In addition to helping maintain services, recovery funding will support the key aims of the National Bus Strategy of encouraging local authorities and operators to work together to deliver better bus services. In return for receiving funding, operators will be asked to commit to co-operating with the process for establishing Enhanced Partnerships or franchising.With the publication of the National Bus Strategy in March, the government set out bold ambitions to address the long-term challenge of providing quick, reliable, simple and affordable bus travel. Local authorities have been asked to develop ambitious Bus Service Improvement Plans by this October, outlining what will be done at a local level to make travelling by bus as attractive as possible. The Prime Minister has announced £5bn for buses and cycling to deliver the strategy and provide vital investment for the sector.

Department for Digital, Culture, Media and Sport

Broadcasting Policy Update

Oliver Dowden: Today, we are launching a consultation on the future ownership of Channel 4 Television Corporation.Since its creation almost 40 years ago by a Conservative government, Channel 4 has delivered on its remit, aims and objectives. But, in that time, the broadcasting landscape has changed beyond recognition, and continues to change apace.Increased global competition, changing audience habits, the decline of linear advertising revenue and a wave of consolidation in the sector all pose challenges.The consultation therefore asks for views and evidence on what ownership model and remit will best support Channel 4 to thrive for another forty years and beyond.It is the government’s current view, to be tested through the consultation, that a new ownership model would give Channel 4 the broadest range of tools to continue to thrive in the face of these new challenges.There are constraints that come with public ownership, and a new owner could bring access and benefits, including access to capital, new strategic partnerships and to the international markets.As we have set out before, we believe that the need for public service broadcasting in the UK is as strong as ever. We want to see Channel 4 keep its place at the heart of British broadcasting and continue to support the great creative economy in this country. We want to put it on a footing to flourish for decades to come. Now is therefore the time to test whether an alternative ownership model may be better for the broadcaster and better for the country.This consultation forms a key part of the government’s wider strategic review of public service broadcasting, alongside Ofcom’s own reflection exercise. Together, our work will ensure that our public service broadcasters and the wider broadcasting framework are fit for the 21st century.The consultation can be accessed from today on GOV.UK and will run for 10 weeks, closing on 14th September 2021 at 23:45. A copy of the consultation will be placed in the Libraries of both Houses.

Digital Regulation: Driving Growth and Unlocking Innovation

Oliver Dowden: The Government has today published a Plan for Digital Regulation which sets out the next chapter of our approach for how we will regulate digital technologies in order to drive growth and innovation. It brings together all the work we are doing across government in this area under a single coherent vision.Innovation is at the heart of this plan. We want to encourage it wherever we can, so that we can use tech as an engine for growth and create thriving markets that will cement our position as the tech capital of Europe. We want to do so while also protecting businesses and citizens and upholding their fundamental rights.Where it is necessary for government to intervene, we will do so in a way that gets this balance right. We will therefore ensure that regulation promotes competition and innovation in digital technologies, while keeping the UK safe and secure online. We will also promote a flourishing democratic society, and protect our fundamental rights.The Digital Regulation Plan sets out how we will achieve that balance, setting out new principles for how we design and implement regulation so we actively promote innovation, achieve forward-looking and coherent outcomes; and exploit opportunities and address challenges in the international arena. It also sets out some practical steps the government is taking right now to seize the opportunities of the digital revolution.The Plan is pro-tech and pro-innovation, and builds on the government’s Ten Tech Priorities to fuel a new era of startups and scaleups, keep the UK safe and secure online, and ensure that the UK continues to lead the global conversation on tech.This is intended as the start of the conversation on how we design and implement the right rules for the next chapter in governing digital technologies. To ensure the success of the Plan, I want to work with interested parties with a broad range of views on the future of digital regulation, from Parliament, to civil society, to industry, to academia.A copy of the plan will be placed in the Libraries of both Houses.

Home Office

Nationality and Borders Bill

Priti Patel: In March I published the New Plan for Immigration (NPI), setting out the overwhelming case for change to fix the broken asylum system, and deliver a system that is fair but firm. The Nationality and Borders Bill, introduced today, will deliver the most comprehensive reform of the asylum system in decades. The principle behind the Bill is simple: access to the United Kingdom’s asylum system should be based on need, not on the ability to pay people smugglers. The Bill – and the wider NPI – has three key objectives: Make the system fairer and more effective so that we can better protect and support those in genuine need of asylum. Deter illegal entry into the UK breaking the business model of criminal trafficking networks and saving lives. Removing from the UK those with no right to be here. The introduction of the Bill was preceded by a consultation on the NPI which the Government will provide a response to in due course. To support the parliamentary scrutiny of the Bill, we are publishing a gov.uk page. This can be found at:https://www.gov.uk/government/collections/the-nationality-and-borders-bill

Department for Business, Energy and Industrial Strategy

Business Update

Kwasi Kwarteng: I am delighted to welcome the confirmation by Stellantis of a transformational investment at its Vauxhall plant in Ellesmere Port, which will see the site become the first mass volume, fully battery electric vehicle plant in the UK and Europe. Stellantis have committed to investing more than £100 million to transition the plant to produce a new generation of electric vehicles, safeguarding the future of the site and its supply chain for the next decade.This announcement demonstrates that our net zero ambitions are being welcomed and matched by business, as we work towards increasing the manufacture of electric vehicles in the UK. The Government is committed to ensuring we continue to be one of the best locations in the world for automotive manufacturing and are working closely with the sector to make sure it remains competitive, attracts investment, and protects and creates jobs.Just over six months ago we presented the Prime Minister’s Ten Point Plan for a green industrial revolution, setting an ambitious roadmap for transforming our economy, unlocking investment and levelling up the regions. The Plan included a commitment to phase out the sale of new petrol and diesel cars and vans by 2030. The decision by Stellantis to invest in electrification in the UK, alongside recent announcements by Nissan and Envision in Sunderland, are excellent illustrations of business and Government working together to achieve decarbonisation within the sector.I was pleased to inform the House in June of the strong consumer growth over the past year, which our strategy is helping to drive. As of March 2021, battery electric vehicle sales stood at 7.7% of the market, up 88% on a year earlier, while plug-in hybrid vehicles sales were 6.1%, an increase of 152%. Changing consumer habits such as the way we shop have also driven a strong increase in demand for light commercial vehicles, and this announcement will help transition the fleet with a new vehicle produced here in the UK. This investment will grow domestic production of electric commercial vehicles, help reduce our reliance on imports and play an important part in reducing emissions in towns and cities across the country.I am sure Members will agree that this is an important announcement for Cheshire, Merseyside and the North West of England, which secures the continued presence of a key anchor for the local and regional economy. This significant investment has been secured thanks to a strong partnership approach between Stellantis and the Government, alongside Cheshire West and Chester Council, and the Cheshire and Warrington Local Enterprise Partnership to maximise the benefits of the transformation of the plant to the wider local economy.This news will be welcomed by the workforce at Ellesmere Port and is a testament to their skills and hard work. The Ellesmere Port plant has been a crucial part of automotive manufacturing in the UK since it first opened nearly 60 years ago. This announcement means that that milestone will be marked next year with the production of its first all electric vehicle – building a sound future on Vauxhall’s proud legacy.Today’s announcement is further proof that there is a bright future for automotive manufacturing in this country. The Government is committed to supporting this transition including £500 million to support the electrification of UK vehicles and their supply chains, as part of a wider commitment of up to £1 billion. As Secretary of State I will continue to champion the sector, ensuring that we make the most of the opportunities of the transition to zero emission vehicles and attract further investment, boost innovation and sustain tens of thousands of jobs in manufacturing and the supply chain.

Treasury

Fiscal Risks Report 2021

Rishi Sunak: In accordance with the Charter for Budget Responsibility, the OBR has today published its third Fiscal Risks Report (FRR). FRR 2021 provides an update on the risks identified in previous reports, alongside focussed coverage of three areas of fiscal risk: the coronavirus pandemic, climate change, and the cost of government debt. I am grateful to the Budget Responsibility Committee, and staff of the OBR, for their work in preparing this report, which ensures that the UK continues to be at the forefront of fiscal transparency and management during these unprecedented times. The report was laid before Parliament earlier today and copies are available in the Vote Office. The government will respond formally to FRR 2021 within the next year. The UK has experienced two ‘once-in-a-generation’ economic shocks in just over a decade, and the challenges faced by the UK since the start of the pandemic have been substantial. Action taken over the last decade to restore the public finances to health enabled the government to fund a comprehensive package of support for the economy when most needed. The report notes that our direct support to businesses helped keep many of our employers afloat, kept insolvencies in check and avoided the kind of credit-crunch that occurred during the financial crisis. The government has acted on a scale unmatched in recent history to protect people’s jobs and livelihoods and to support businesses and public services across the UK. Taking into account the significant support confirmed at Spending Review 2020 and Budget 2021, total announced support for the economy in response to Covid-19 is £352 billion across 2020-21 and 2021-22. The report highlights the range of spending choices and risks we face, particularly relating to pandemic spending. These will be considered at the Spending Review. As the report notes, spending is increasing in cash terms, real terms, and as share of GDP overall. Total managed expenditure is forecast to rise by 2.1 per cent of GDP between 2019-20 and 2024-25. Core departmental spending is set to grow at an average of over 3 per cent in real terms over this Parliament. Our plans will deliver the largest real terms increase in departmental spending for any full Parliament this century. It is clear that unmitigated climate change is another significant fiscal risk and decarbonisation is essential for sustainable long-term growth and therefore also for the health of the public finances. The fiscal consequences of transition to net zero will need to be managed in line with the government’s broader fiscal strategy. The government will publish our Net Zero Strategy later this year, which will set out more detail on how we will meet our net zero target. The pandemic and the government’s necessary policy response has led to an unprecedented increase in government borrowing and debt; FRR 2021 illustrates how this has made the public finances more sensitive to changes in interest rates. While borrowing costs are affordable now, interest rates and inflation may not stay low forever. The OBR’s latest forecast recognises that the government’s current fiscal plans deliver a stable medium-term outlook for public sector net debt, but as I set out at that Budget, we need to pay close attention to the affordability of that debt. The risks discussed by the OBR in this report underline the importance of returning our public finances to a more sustainable path. The report finds that, in the face of many potential fiscal risks, “fiscal space may be the single most valuable risk management tool”. That is why the government set out at Budget 2021 a plan for returning the public finances to a more sustainable path. It is vital that we rebuild fiscal space to ensure that the government can maintain fiscal resilience to respond as future risks materialise, continue to invest in excellent public services and give businesses and citizens across the UK the certainty that comes with knowing we can and will support them.